A novel micro combined heat and power system and a dynamic model thereof were presented in part one of the publication. In the following, the control system and dynamic performance of the system are presented. The model is subjected to a measured consumption pattern of 25 Danish single family houses with measurements of heat, power and hot water consumption every 15th minute during one year. Three scenarios are analyzed ranging from heat following only (grid compensation for electricity) to heat and power following with net export of electricity during high and peak load hours. Average electrical efficiencies above 40%(LHV) and beyond 90%(LHV) total efficiency were obtained. (C) 2008 International Association for Hydrogen Energy. Published by Elsevier Ltd. All rights reserved.